Will Treasury Wine Estates Improve With Age?

Treasury Wine Estates may have outperformed the benchmark S&P/ASX200 index by 18.4% in the past six months but JPMorgan, Citi, Credit Suisse and Commonwealth Bank of Australia all reckon it’s better to be underweight.

Spun out in May from the now de-listed Foster’s Group, the company just became Australia’s largest listed alcohol company with a market capitalization of 2.5 billion Australian dollars (US$2.55 billion).

CBA analyst Jordan Rogers downgraded the stock to “sell” last Thursday, with a price target of A$3.50 citing its outperformance and domestic grape oversupply.